Hertz ready to go public, paper says After buying auto rental company from Ford only months ago, private equity firms eye IPO, according to report. NEW YORK (CNNMoney.com) -- In what is expected to be one of the largest IPOs of the year, Hertz Corp., which was bought from Ford late last year by three private equity firms, is said to be preparing registration papers for its market debut, according to The Wall Street Journal. Hertz's owners, the Carlyle Group, Clayton Dubilier & Rice Inc., and Merrill Lynch Global Private Equity, bought it for $2.3 billion last year in addition to taking on $13 billion in debt from Ford (Charts), the newspaper reported. The firms, which have already earned back nearly half the cash, are seeking to "flip" their property while the debt and equity markets remain generous. The car rental industry, too, has been doing well, profiting from a healthy spring and summer travel season. Hertz turned in an 8.9 percent revenue increase in the first quarter, rising from $1.64 billion to $1.79 billion. Private equity firms typically hold on to investments for years but will take advantage of quick returns if the market allows, the Journal reported. _____________________ Related: IPOs: Don't fear 'The Flip' |
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